The Alan Smith Team Sellers Guide

YOUR EXCLUSIVE GUIDE TO

SELLING A HOME

BY THE ALAN SMITH TEAM

The Alan Smith Team REALTORS®, CRS, GRI, CDPE, CLHMS

Direct: 303.932.3306 Cell: 303.503.2526

Alan@AlanJSmith.com www.TheAlanJSmithTeam.com

8500 West Bowles Avenue, #100 Littleton, CO 80123 Each Office Independently Owned and Operated.

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MEET THE TEAM ALAN SMITH

A licensed Realtor since 1983, Alan is one of

seven beautiful grandchildren. Alan has spent

the Broker/Owners of RE/MAX Professionals, and holds the CRS, GRI, CDPE, and CLHMS designations, which gives him expertise in all aspects of negotiating real estate including a Certified Luxury Home Marketing Specialist!

He is also a CRB Candidate, which specializes in Residential Brokerage Administration.

his life in service and leadership in his church and community. He has coached basketball for many years in youth leagues and Dakota Ridge High School. He created a “Partner in Education” with several neighborhood schools to increase student reading and provide more books for their libraries. Alan loves this beautiful country we live in and the freedoms we enjoy. He displays 100’s of American flags along Grant Ranch Boulevard on patriotic holidays every year!

After spending 10 years with Century 21, Alan joined RE/MAX Professionals in January of 1994.

Alan absolutely enjoys working with the best Realtors in the business and thrives with the top producers and true professionals at RE/MAX Professionals. He is a member of the RE/MAX Chairman’s Club, and has been inducted into the RE/MAX Hall of Fame, and received the Lifetime Achievement Award. Alan entered the Pinnacle of RE/MAX Honors in 2010, as he was inducted into the RE/MAX Circle of Legends!

Alan and his wife DeAnne have lived in the Littleton area for 35+ years and have raised three children. They love spending time with their family and are thrilled to have all three of their children married with wonderful spouses and

Alan and his family enjoy the Colorado outdoors, playing basketball, golfing, tennis, and all boating activities! Alan and his team enjoy helping families get into their first home or move up to their luxury dream home.

SHARI SMITH Assistant to Alan, Dave, and Corbin of the Alan Smith Team, Shari has worked in the exciting Colorado real estate world for 22+ years.

A Colorado native, Shari spent her college years in Fort Collins – CSU – earning her degrees in Business Administration/Marketing as well as Apparel Design/Merchandising. Since then, she has resided in Littleton and Denver, staying close to her family in Parker and Castle Rock. Shari loves Colorado for all of the same reasons you do (or will) – and she is so proud to call it home.

DAVID PRATT David joined the Alan Smith Team in 2013. He has a passion for helping people realize their dream of owning a piece of property. He is convinced that there is no one better than our team to help people achieve their goals in real estate and has worked with both buyers and sellers in all areas of the greater Denver area. The Alan Smith Team offers many industry-leading tools, and David loves sharing those with buyers and sellers to help them get the most out of their experience.

David has a degree in Business Management with an emphasis in finance from Brigham Young University - Idaho and a minor in Russian.

Prior to receiving his degree, David served a two-year mission for the LDS church where he

became fluent in Russian while serving among the people of Latvia, Lithuania, and Estonia.

David and his wife, Lindsay, have two boys, Parker and Oliver, and a baby girl, Penelope.

He was born and raised in Fort Collins, but has always loved the greater Denver area and is excited to be in Littleton. He loves to mountain bike, wakeboard/surf, snowboard, ski, and play soccer.

CORBIN SMITH Corbin has been selling real estate since 2008 and he loves the challenge of helping sellers sell their home and helping buyers buy their dream home. Corbin is passionate and enthusiastic about real estate, and he enjoys and excels at negotiating on behalf of his clients.

He has a degree in Political Science from UNLV. Prior to real estate, Corbin worked for Bank of America, where he worked his way up from a part-time teller to a market manager. He moved his family to Colorado from Las Vegas in 2007 to join The Alan Smith team.

Corbin and his wife, Gail, have three kids; they keep them busy with volleyball, swimming, tennis, baseball, basketball, and football. He loves spending time with his family and enjoying the beautiful Colorado weather.

CONTENTS Introduction

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Our Commitment to You

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Steps to Selling Your Home

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Define Your Goals

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Price the Property

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Prepare the Home

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Market the Home

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Show the Home

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Ask for Feedback

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Negotiate the Offer

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Remove Contingencies

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Close the Deal

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Moving Out Checklist

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Frequently Asked Questions

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Real Customers, Real Reviews

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A Home Seller's Glossary

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YOUR PERSONALIZED GUIDE TO SELLING A HOME Selling a home requires calculated finesse, the right connections, exceptional marketing capabilities, and a thorough understanding of the local market. It can be a combination of excitement, stress, and new experiences, whether you have sold several homes, or this is your first time.

There are several moving parts and points to consider when selling a home, which is why it is important to have a trusted professional consulting you at each step of the process.

This Seller’s Guide is intended to give you a tangible resource that will help you define your goals and direct you through the process so that you can make informed decisions.

When you sell a home, it should be about YOU: • Your dreams • Your requirements • Your financial situation • Your time • Your lifestyle choices • Your concerns

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Alan Smith Broker/Owner 303.932.3306 Alan@alanjsmith.com

Shari Smith Administrative Assistant 303.932.3307 Shari@alanjsmith.com

David Pratt Broker Partner 720.737.9404 Dave@alanjsmith.com

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Corbin Smith Broker Partner 303.646.7773 Corbin@alanjsmith.com

OUR COMMITMENT TO YOU It is important to work with Realtors who are not only committed to working with you but who are also dedicated to helping you sell your home. They should be someone you trust and who is protective of your interests. As your Realtor, this is our commitment to you: RESPONSIBILITIES Educating you about the selling agency and professional responsibilities including complete disclosure, loyalty, confidentiality, compliance, and accountability.

PREPARING AND SHOWING THE HOME Preparing your home to match buyer’s expectations, arranging the right showings, and recommending relevant experts.

CONSULTATION AND NEGOTIATION Providing consultation when offers come to purchase your home. Negotiating the best possible price and terms for you, finding homerelated service providers, and taking care of all the documentation details.

UNDERSTANDING YOUR REQUIREMENTS Taking the time to understand the priority of your requirements – price, timeline, relocating, even if it changes.

MARKETING YOUR HOME Providing a sophisticated marketing strategy that ensures the maximum exposure of your home to the right buyers. Keeping you up-to-date with current market trends, neighborhood fluctuations, new sales, and listings. Selling is all about having the right knowledge at your fingertips.

CLOSING Keeping you fully informed about all activities that lead to the transaction closing.

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STEPS TO SELLING YOUR HOME START HERE

DEFINE YOUR GOALS

PRICE THE PROPERTY

PREPARE THE HOME

ASK FOR FEEDBACK

SHOW THE HOME

MARKET THE HOME

NEGOTIATE THE OFFER

REMOVE

CLOSE THE DEAL

CONTINGENCIES

MOVE OUT...TURN OVER KEYS

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DEFINE YOUR GOALS Determine Why You Are Selling Everyone has different reasons for selling - as you start to go through this process of discovery, focus on what is important to you and your family.

Here are important questions to ask yourself: xx Why do you want to move? xx Is there a timeline? xx Are you relocating? xx Are there financial considerations? xx Are you looking for a bigger home or looking to downsize? xx Looking for a different neighborhood? More city, more suburban? xx Looking for different amenities?

Here are three important considerations: xx Is this the right time for you to sell? xx What are the present market conditions and the implications to your sale? xx Does your home’s equity give you an advantage?

Recognize that every market is different and the selling process can be a sprint or a marathon - be prepared for both.

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CHOOSING A TITLE COMPANY In preparation for selling your home, we will want to ensure the title is clear before placing it on the market. If a title is clouded (not clear), appropriate measures will need to be taken to clear it.

POSSIBLE REASONS FOR A CLOUDED TITLE: 1. Recording Error 2. Fraud 3. Liens 4. Probate Issues 5. Foreclosures

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PRICE THE PROPERTY Pricing it Right the First Time Our Experience Will Make the Difference While not all homes are the same, it is important that we price your home correctly from the beginning to avoid having to lower the price at a later date. The correct price can be determined by a market evaluation.

Price sets “the opinion of value.” Price it too high against comparable properties and your home may not sell. Price it too low and you may not achieve the true value of your home.

THE FAIR MARKET VALUE IS INFLUENCED BY: Location Condition and its unique features Buyer demand Prices of similar properties on the market Recent sales Availability of financing THE HIDDEN INFLUENCE Always make sure you point out the positives and negatives of your home to us, as your Realtor – these nuances can be turned into an advantage if known in advance. Remember, no one knows your home and its location like you do.

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PREPARE THE HOME Let Your Home Win Over Buyers Every home requires at least some version of preparation, whether that is de-cluttering, defining each room's purpose, staging, or major renovations. As your Realtors, we will review your home together and will advise you based on experience on the proper preparation needed for your home.

HELPFUL TIPS: xx Think of this process as a head start to packing. xx Even though some repairs seem minor, they become a major factor in determining whether the buyer will actually buy. xx Pay particular attention to smell: odors are a complete turn-off. xx Don’t forget about the outside, as this is the first impression. xx Scrutinize the home. If you were a buyer would you want to buy this home? You have lived here and you know all the pros and cons. Highlight the pros and help eliminate the cons.

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MARKET THE HOME Each home has its own unique story to tell and the marketing should reflect that. We will take the time to discuss the correct marketing plan to successfully market the home. A comprehensive and customized marketing strategy will complement the time, money, and energy that you have invested in your home.

PHOTOGRAPHY A key element to all marketing is the right photography. Your home has five seconds to impress and grab attention. The right photography can give you an extra 20 seconds and a great photo can evoke emotion. This is where they fall in love first. Skilled professionals know how to use composition, color, and lighting to enhance the subject.

PRINT MEDIA Tangible resources such as yard signs, directionals, postcards, and property brochures, are great options to draw buyers in to come visit the home.

DIGITAL EXPOSURE Your online footprint gives you access to social media and 24/7 web exposure. It is the quickest way to get your home exposed locally, nationally, and internationally.

NETWORKING & REFERRALS We will utilize our network and referral systems to create additional sources of potential buyers.

Networking with other local, national, and international relocation experts creates a larger database.

Local advertising, word-of-mouth, and open houses create referrals from local homeowners who are the biggest advocates for having their friends and family move into their neighborhood.

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SHOW THE HOME Letting Your Home Shine Here are some things to consider when showing your home: LET US HANDLE IT A potential buyer is less likely to voice any concerns in front of you. Give them the space to explore and scrutinize. Remember – we, as your Realtors – are your ally. Let us handle any concerns a buyer may have.

BE FLEXIBLE Like many home sellers, home buyers are on a tight schedule. Continue to be flexible, especially if you are still living in the home.

CLIMATE CONTROL Make sure the temperature of the home is comfortable. You want buyers to feel comfortable and not rush the process because they are too hot or too cold.

ANIMAL CARE A pet-friendly home is a great selling point. However, if potential buyers are not animal friendly, you don’t want your pet(s) to be a distraction. If you can, remove them from the home temporarily or place them in a contained space.

COMMUNICATE WITH YOUR REALTOR If there are special aspects to the home that you want to be featured and recognized during the viewing of the home, make sure to communicate that clearly to us.

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ASK FOR FEEDBACK Knowing is Half the Battle It is never easy hearing negative remarks about your home, but knowing is half the battle. The information provided could be helpful for the next showing. Following a showing, we will discuss with you to measure your home’s reception and consider recommendations.

REVIEW: xx Are you receiving positive feedback from private showings, public showings, and open houses?

Use this feedback to enhance your home’s presentation for future showings. xx Could your home use an incentive to entice more buyers to come for a look? xx Be patient. Be open to feedback and maintain an open dialogue with us.

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NEGOTIATE THE OFFER Starting the Process Perhaps the most complex moment in the process comes when you get an offer on the home.

An offer can be drafted with or without conditions. An offer without conditions is known as a firm or contingent-free offer. An offer with conditions is known as a conditional offer. Once the conditions are satisfied, the buyer or seller will be obligated to purchase or sell the property. If the conditions are not met then the buyer or seller is not obligated to purchase or sell the property.

POINTS TO CONSIDER IN YOUR NEGOTIATIONS: xx The comparative condition of your home xx Length of time on the market xx Desire of buyer xx Location xx Your urgency to sell You can reject or accept the initial offer. If you agree to some points of the offer but not others, you would submit a counter offer. The counter offer may differ from the original offer with respect to price, conditions, closing date, and the like. Offers can be countered back and forth until one party accepts or rejects the offer, ending the negotiations altogether.

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REMOVE CONTINGENCIES Managing the Details Once both parties accept the sales contract and its contingencies, we will start to work towards removing these conditions.

It is important to understand the options available to you should one of the conditions you are responsible for not be removed prior to the contract date. This does not automatically mean that the ‘deal is dead’ – having a Realtor who is a good negotiator and will work with the buyer’s agent to find a solution is key.

Equally, conditions that the buyer needs to address can also be provided with extensions – this is the seller’s choice.

As your trusted Realtors, we will advise you on the best course of action based on our knowledge and experience.

Once both parties are satisfied and wish to commit to the purchase and sale of your home, a contingency removal document will be prepared for both parties to sign.

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CLOSE THE DEAL Finalizing the Details After the contingencies have been removed, it becomes the responsibility of the legal and financial institutions to prepare all the necessary paperwork. Should any issues arise, we will contact you directly.

You will need to inform the Escrow Company how you would like the funds deposited from the sale.

At closing, you will sign all of your legal documents, including paperwork related to the transfer of ownership. There is usually a representative from the Escrow Company to facilitate the exchange.

When closing is finished, you should not only be prepared to hand over the keys but any copies of documentation that relates to the property and its amenities. You will receive a copy of the documentation you signed together with a statement of costs. At the end of closing, the deed will be taken and recorded at the county clerk’s office.

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MOVING OUT CHECKLIST Even if you are hiring professionals to move you out there are still important considerations: Notify current utility companies - advise of new address, shut-off and connection dates, and if necessary, moving equipment: Electric Water/Sewer (We will instruct the Title Company to arrange the water/sewer transfer) Trash Gas Telephone Cell Phone Cable/Satellite Internet Insurance - transfer homeowners insurance to new home File change of address with postal service - start and end dates Notify DMV of new address - driver’s license, registration tags Notify your bank and credit card companies of your move and that you will be making purchases in a new area Update voter registration Updated medical records - notify doctors, dentists, pharmacists Update employer records Notify children’s school and activities of move Cancel/Update gym memberships and local memberships, if not staying in area Return library books or other things you have borrowed Hire housekeeping and landscaping services to ensure the home is clean before the new buyers arrive Send out “Just Moved” cards to notify family and friends of new address

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FREQUENTLY ASKED QUESTIONS WHEN IS THE BEST TIME TO SELL?

HOW LONG WILL THE LISTING AGREEMENT LAST?

When you are ready. Every real estate market is different, therefore, the best time to sell a home will be different from community to community.

Don’t wait for perfect conditions to sell – they don’t exist.

Every real estate professional will have a preferred length. One thing to keep in mind when asking about the length of a listing agreement is the average days on the market. If the average days on the market (DOM) in your local real estate are 75, a 90-day listing agreement may not be enough.

HOW DO YOU CHOOSE A REALTOR? Think of the process as equivalent to giving a job interview. Do they know your local market?

Price points? Types of homes? What is their track record for sales in your community? Can they provide testimonials? Ask for references!

HOW MUCH COMMISSION SHOULD YOU PAY? The saying “you get what you pay for” is true.

Choosing a Realtor based solely on the fact they offer the lowest commission is a common mistake made by home sellers. When searching for an agent, ask what added value they bring and know that commission is never a set number.

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REAL CUSTOMERS, REAL REVIEWS Every service provided by The Alan Smith Team exceeded our expectations. We're so grateful for all of your work to make selling our house a very quick and harmonious experience. Thanks so much!

JEFF & JANET We've bought and sold a lot of houses over the years, but this was by far the easiest and fastest collaboration ever! From listing to moving to closing, the whole process took six weeks. David did an awesome job and really went above and beyond. We were out-of-town sellers, so David's recommendations for contractors, painters, etc., were excellent, and he was available to meet them in our absence. He is very knowledgeable about current market conditions and trends; he gave us a few suggestions regarding updates we might consider - we agreed and the house sold in one day. He is very responsive and quick to answer emails, texts, etc. - a true professional and we can't say enough about our experience with David!

MARK & BARB What another Realtor could not do in two months, Alan Smith and his team did in nine days. During those nine days, we had more showings than we had in the two months prior. His team works like a well-oiled machine. During the previous five years, the Denver market was a seller's market. Realtors didn't have to sell homes; they simply took bids on them. Our original agent was a perfect example; we wasted two months and then decided to go with the Alan Smith Team. We signed the contract, and he and his team were non-stop selling our home with extensive advertising our previous agent had no clue about. Bottom line: I don't think you can find another Realtor in Colorado with the skill and many years of experience in tough markets the Alan Smith Team has. Many thanks to Alan, Corbin, and Shari for your superb performance marketing, selling, and fixing inspection items for us while we had relocated to Florida. GO WITH THE SMITH TEAM - there is none better!

JOHN & ALICE

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A HOME SELLER’S GLOSSARY When selling a home, it’s important to understand some of the key concepts and terms. Throughout the selling process, we will be available to explain any unfamiliar terms you encounter. That said, here is a list of terms you’ll want to know: Abstract Of Title – A complete historical summary of the public records relating to the legal ownership of a particular property from the time of the first transfer to present.

Adjustable Rate Mortgage (ARM) – Also known as a variable-rate loan, an ARM is one in which the interest rate changes over time.

Agreement of Sale – Also known as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller and buyer agree to transact under certain terms spelled out in writing and signed by both parties.

Amortization – The process of reducing the principal debt through a schedule of fixed payments at regular intervals of time, with an interest rate specified in a loan document.

Appraisal – An appraiser’s estimate of the market value of a property, based on local market data and the recent sale prices of similar properties.

Assessed Value – The value placed on a home by municipal assessors for the purposes of determining property taxes.

Closing – The final steps in the transfer of property ownership. On the Closing Date, as specified by the sales agreement, the buyer inspects and signs all the documents relating to the transaction and the final disbursements are paid. Also referred to as the Settlement.

Closing Costs – The costs to complete a real estate transaction, in addition to the price of the home and may include: points, taxes, title insurance, appraisal fees, and legal fees.

Closing Date – This is usually the date that the legal ownership of the property transfers from the seller to the buyer.

Conditions or "Subjects" – Items that are usually put in place to protect a party’s interests upon selling or buying the property and refer to things that must occur or be in place before the sale closes. Some of these conditions could be “subject to financing approval,” “subject to the buyer’s house selling,” “subject to seller finding suitable housing,” etc.

Contingency – A clause in the purchase contract that describes certain conditions that must be met and agreed upon by both buyer and seller before the contract is binding.

Conventional Mortgage – One that is not insured or guaranteed by the federal government.

Counter Offer – An offer, made in response to a previous offer, that rejects all or part of it, while enabling negotiations to continue towards a mutually-acceptable sales contract.

Debt-to-Income Ratio – A ratio that measures total debt burden. It is calculated by dividing gross monthly debt repayments, including mortgages, by gross monthly income.

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Deposit – The amount of money provided from the buyer to the seller as a token of the buyer’s assurance and intention to buy the property involved. The deposit is applied against the purchase price of the home once the sale has closed. Your agent can assist you in proposing an appropriate amount for the deposit.

Disclosures – Disclosure statements, which can come in a variety of forms, are the buyer’s opportunity to learn as much as they can about the property. Seller disclosures include knowledge of issues with the home.

They serve to inform buyers and they can protect the sellers from future legal action. It is the seller’s chance to lay out anything that can negatively affect the value, usefulness, or enjoyment of the property.

Down Payment – The money paid by the buyer to the lender at the time of the closing.

The amount is the difference between the sales price and the mortgage loan.

Requirements vary by loan type. Down payments less than 20% usually require mortgage insurance.

Earnest Money – A deposit given by the buyer to bind a purchase offer and which is held in escrow. If the property sale is closed, the deposit is applied to the purchase price.

If the buyer does not fulfill all contract obligations, the deposit may be forfeited.

Easements – Legal right of access to use a property by individuals or groups for specific purposes. Easements may affect property values and are sometimes part of the deed.

Equity – The value of the property, less the loan balance and any outstanding liens or other debts against the property.

Escrow – Funds held by a neutral third party (the escrow agent) until conditions of a contract are met and the funds can be paid out. Escrow accounts are also used by loan services to pay property taxes and homeowners insurance.

Fixed-Rate Mortgage – A type of mortgage loan in which the interest rate does not change during the entire term of the loan.

Home Inspection – Professional inspection of a home, paid for by the buyer, to evaluate the quality and safety of its plumbing, heating, wiring, appliances, roof, foundation, etc.

Home Warranty - Service contract that covers the repair or replacement of home system components and appliances that break down.

Homeowners Insurance – A policy that protects you and the lender from natural disasters and liabilities such as a visitor injury or damage to your personal property.

Inclusions and Exclusions – Specifications within the offer that detail the items to be included or excluded from the purchase of the property. Typical inclusions are appliances, window coverings, fixtures, and decorative pieces.

Lien – A claim or charge on property for payment of a debt. With a mortgage, the lender has the right to take the Title to your property if you don’t make the mortgage payments.

Market Value – The amount a buyer would pay a seller for a home. An appraised value is an estimate of the current fair market value.

Mortgage Insurance – Purchased by the buyer to protect the lender in the event of default (typically for loans with less than 20% down). Available through a government agency like the Federal Housing Administration (FHA) or through private mortgage insurers (PMI).

Purchase Price – The amount that the buyer is offering to pay for the property, usually dependent on market conditions and may differ from the seller’s current asking price.

There is no “normal” amount or percentage that a price will differ from its asking price, as the final price will be determined by many factors, including the seller’s motivation and how close the asking price is to actual “market value.”

Possession and Adjustment Dates – When the buyer takes possession as specified in contract of purchase sale and adjustments are made for prepaid taxes, maintenance fees, etc. They are usually the same date.

Terms – An offer includes certain “terms,” which specify the total price offered and how the financing will be arranged, such as if you will arrange your own with a financial institution or mortgage broker, or if you wish to take over the seller’s mortgage (assumability).

Possession Date – The date, as specified by the sales agreement, that the buyer can move into the property. Generally, it occurs within a couple days of the Closing Date.

Title – The right to and the ownership of property. A Title or Deed is sometimes used as proof of ownership of land. Clear title refers to a title that has no legal defects.

Pre-Approval Letter – A letter from a mortgage lender indicating that a buyer qualifies for a mortgage of a specific amount. It also shows a home seller that you’re a serious buyer.

Title Insurance – Insurance policy that guarantees the accuracy of the title search and protects lenders and homeowners against legal problems with the title.

Principal – The amount of money borrowed from a lender to buy a home, or the amount of the loan that has not yet been repaid. Does not include the interest paid to borrow.

Title Search – A historical review of all legal documents relating to ownership of a property to determine if there have been any flaws in prior transfers of ownership or if there are any claims or encumbrances on the title to the property.

Purchase Contract – A detailed written document which makes an offer to purchase a property, and may be amended several times in the process of negotiations. When signed by all parties involved in the sale, the Purchase Offer becomes a legally-binding sales agreement.*

Truth-In-Lending Act (TILA) – Federal law that requires disclosure of a Truth-InLending statement for consumer loans. The statement includes a summary of the total cost of credit.

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NOTES

We would like to thank you for giving us the opportunity to represent you. Our goal and commitment is to make the home selling process as seamless as possible.

Regardless of your real estate needs, know that we are always here to assist you because we are not just providing a service, we are building a relationship.

The Alan Smith Team

T HE A LA N S M I T H T EAM | 303.932.3306 | WWW.T H E ALANSM ITHTEAM .COM Copyright© October 2019